Hello, thank you for your query.
If you want to start investing in a mutual fund, you first have to complete the KYC process and declare whether or not you are a politically exposed person (PEP).
PEP is a person who is authorized to perform prominent public functions in a country and include governors of the state, members of parliament, military officers, senior government, and judicial executives and heads of local bodies such as municipal corporations, among others. You also qualify as a PEP if you are a family member or a close relative of such an individual.
If you are a PEP or subsequently qualify as one, your transactions would be closely monitored by the anti-money laundering committee of the mutual fund company to keep track of the circulation of money.
If you are a PEP, your KYC and customer due diligence process could get enhanced and take a fairly long time than usual with the requirement of some additional documents.
Hope this solves your query.